Spot gold had risen 0.25 percent to $1,293.43 per ounce by 0255 GMT, after marking its lowest since Dec. 27 in the previous session at $1,286.20.
U.S. gold futures for June delivery were 0.1-percent higher at $1,292.80 per ounce.
· The dollar slipped versus major rivals on Thursday after it hit a 2018-peak overnight, while the euro hovered near a five-month low on concerns that political developments in Italy could cause wider disruptions in the common currency bloc.
· "The tug-of-war between risk appetite and dollar-strength will be key in determining how gold may move. We have already seen some potential safe-haven buying ... given the potential breakdown in U.S.-Pyongyang talks, despite a stronger greenback," said OCBC analyst Barnabas Gan.
· Meanwhile, weighing on upward momentum for gold were surging U.S. bond yields, with the yield on the benchmark 10-year note hitting its highest level since 2011 on signs the economy was strengthening.
· In other precious metals, silver was up 0.4 percent at $16.41 an ounce, after touching the lowest in two weeks at $16.17 in the previous session.
Platinum was up 0.5 percent at $892.30 per ounce, after hitting a five-month low of $883.50 on Wednesday. Palladium rose 0.3 percent to $986.15 per ounce.
· Technically, gold prices Tuesday dropped below what was major psychological support at $1,300.00, which has now become stiff chart resistance. Prices are in a two-month-old downtrend on the daily bar chart. The gold bears now have the overall near-term technical advantage. Gold bulls' next upside near-term price breakout objective is to produce a close above solid technical resistance at $1,300.00. Bears' next near-term downside price breakout objective is pushing prices below solid technical support at the December low of $1,247.20, basis June futures. First resistance is seen at today’s high of $1,296.40 and then at $1,300.00. First support is seen at today’s low of $1,285.70 and then at $1,280.00. Wyckoff's Market Rating: 3.5.
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